To your pointsA few rebuttals to the excellent talking points.
- The currency exchange rates only varied 10% over the past year. Even when the US Dollar is stronger, the manufacturers raise prices. I believe some of the currency manipulation was to increase the cost of imports to make domestic manufacturing more attractive. I am just throwing this out as I do not know how much this has to do with current pricing.
- The manufacturing part of the components and assembly is a small part of the over all price of the bike. The marketing budget to pay pro riders to say their bikes are the best and all the sponsorships of races and such is huge. This is the old argument of why pay hundreds for a sneaker endorsed by Michael Jordan that costs dollars to manufacture.
- How much of the component cost increases are due to the tariffs. Will we see tariffs decrease under the new administration?
- It is the end of many company's fiscal year. Once the annual reports are out, CEOs will identify the increased profits due to pricing or struggles with higher costs.
1 currency has a real impact; especially yen, NT$, and RMB. — about a year ago 32 NT to USD, NOW 28!
2 manufacturering is about 30% of normal end user price; duties and ocean about 8 to 14% depending on type of bike; distribution costs are the rest- meaning over half
3 increased tariffs - does not effect higher level bikes made in Taiwan (which are most nice bikes) - does not effect mine as they are all Taiwan right now - many brands moved lower level stuff to Cambodia or other low cost counties - I expect new administration will drop China duties back to normal - but not till later
4 Please! The price increases have nothing to do with heartless CEOs trying to look good or whatever - ocean frt is thru the roof,all components are increased , and exchange rates not swinging our way
no one that loves cycling, which are most in the industry , likes this
and I personally hate it
Anytime someone who wants a new bike can not get it; an angle cries
And if the cyclist is a kid, an angle dies